Kitco launches gold-backed stablecoin
Kitco, a global precious metals market authority, through its Kitco Digital Metals Group, is partnering with First Digital Trust, Stably, and Tradewind Markets to launch Kitco Gold (KGLD) — an ERC-20 token representing one true, troy ounce of fine gold.
World-renowned precious metals retailer and leading voice in commodities news, data, and insights today announce the upcoming launch of Kitco Gold (ticker: KGLD), a gold-backed stablecoin fully backed by physical gold held securely in DirectReserve™ vaults. It combines the safe-haven benefits of owning physical gold with the flexibility, transparency, affordability, and security of a digital asset.
The project is the first major technology adoption from the traditional precious metals and gold sector, launched by a real-metals trading group with over 40 years of history in providing precious metals investment products and services worldwide.
Technology innovation in gold-backed stablecoins has so far been limited and only executed by fintech innovators, but Kitco will tap into their strong institutional investors base who are seeking the digital equivalent of Kitco’s depositories and vaults, audited to the highest industry standards.
The launch has been made possible through a consortium of partners with a long history of building institutional trust in traditional and digital assets. First Digital Trust will administer the token while Stably and Tradewind Markets will provide the multi-layers of trust and security to record the gold on the blockchain.
Kitco Gold is an ERC-20 token that will be easily integrated with exchanges, wallets, lending platforms, and other blockchain products and ecosystems. Kitco Gold is fully backed by physical gold held securely in DirectReserve™ vaults and is tied directly to the real-time market value of the spot gold price. Investors will access the benefits of owning real physical gold with the flexibility, speed, convenience, affordability, and security of a digital asset.
“We've been looking forward to unveiling Kitco Gold, representing a digital receipt of physical gold ownership, which is digitally spendable. Buyers will be able to access a secure and reliable gold token, the most robust asset class to date. Institutional investors will have a competitive alternative to traditional gold products such as gold ETFs, with the additional benefits of real-time trading and settlement enabled by blockchain technology,” says John Dourekas, Chief Business development officer Kitco Digital Metals Group. “Our mission is to bring the gold-backed asset onto multiple blockchains and ecosystems.”
“The Kitco gold partnership brings together a consortium with more than 40 years of legacy history of sourcing, trading and protecting metal and digital assets. This truly-backed gold asset will allow institutional traders to have complete trust in a verified process of gold-value attainment and we look forward to collaborating with the teams to make it a reality,” said Vincent Chok, CEO of First Digital Trust.
"Trust and verification are hallmarks of a well-functioning market. We are pleased to be applying best practices from other asset markets to make gold as an investment asset more secure, accessible, and cost-efficient," says Michael Albanese, CEO of Tradewind Markets.
Each token represents one true troy ounce of fine gold. Ownership records for the underlying gold are managed on the Tradewind ledger, an institutional-grade platform that facilitates the trading and management of precious metal commodities. The safe-haven asset will be secured and protected by First Digital Trust, Hong Kong’s only qualified multi-asset custodian, holding both traditional and digital assets.
Stably, a public blockchain smart contract provider connecting real-world assets to existing and emerging blockchain ecosystems will enable the asset to become available for purchasing and trading to investors.
“Stably is very pleased that our tokenisation engine is enabling Kitco to bridge precious metals from traditional finance (TradFi) to decentralised finance (DeFi) ecosystems. As the world’s largest precious metal website, Kitco shall benefit immensely from access to these new digital distribution channels,” adds Kory Hoang CEO of Stably Corporation.